Global BPO: Philippines vs. Latin America
By: Kathleen Yu | 5/19/2010 9:06:07 PM
As the global Business Process Outsourcing "BPO" market
continues to expand, outsourcing destinations like Latin America
and the Philippines are seeing more foreign investors and
increasing annual revenue. These areas expect a 30-40% profit
upswing from BPO for the first quarter of 2010.
Latin American BPO is poised for growth, with large
multinationals like Citigroup, Pfizer, and Ford setting up
operations in the area. Other international offshore players in the
area include TCS, Convergys and IBM. Latin American countries offer
a number of fragmented domestic IT and BPO services, which enable
bigger companies to capitalize on local acquisitions. Proximity to
the United States and similar time zones may have led to 32% growth
in voice transcription services in 2009 for the region.
Whatever the reason, the tides are shifting toward Latin
American shores and away from India, the traditional leader in the
voice transcription field.
The Philippine BPO sector dominates 15% of the global market,
and is the third largest in the world. Call centers comprise 80% of
Philippine outsourcing, which relies on the local workforce to
supply voice transcription services for foreign multinationals. The
Philippine BPO market is expected to overtake India as a global
outsourcing provider, with revenues expected to reach $13 billion
by 2010. A more mature BPO market , English speaking workforce,
government support, fiscal incentives, special tax zones, and
strategic location translates to better service providers and more
cost efficient service gives the Philippines clear advantages over
Latin American BPO.
BPO ConsultantGregory Kittelson of
Kittelson and Carpo Consulting, "The
Philippine BPO industry is one of the fastest growing in the world.
Many foreign companies prefer the Philippines because of its low
operational costs, educated workforce, and numerous tax incentives.
Not only does this bode well for the country's economy, it also
sends a message to the rest of the world, that the Philippines is
indeed a force to be reckoned with."
Both markets are competitive and
have unique advantages and disadvantages. By analyzing the nature
of both industries, as well as their respective geographical
locations and legal environments, it is possible to determine which
country is best suited as an outsourcing location for your
enterprise. The right information is key.
Contact KMC MAG Group for Global BPO: Philippines vs. Latin America